Democratic Northwest. [volume] (Napoleon, Ohio) 1869-1894, 1887-11-03
COMPLETE AND EXACT REPRINT
FoRAKER'S SPECIAL MESSAGE,
EXECUTIVE DEPT, OFFICE OF THE GovERNoR,
COLUMBUS, o., Aprd 6, 1885,

To the General Assembly:
The financial condition of the State needs
attention. 1t is estimated by the State Audi
tor that the expenditures of the State up to
the first day of next July will amount to
about $500, 900, and that from that date until
the first day of next January they will amount
to about ST. 100000, making a total expendi-
ture of $2,300,000, to be provided for out of
the general revenue fund.
To meet this we had on the first day OF
April cash balance in the treasury of only
about 100000, and it is estimated by the
State Auditor that our total revenues from the
taxes to be collected in June and all other
sources will amount to only about 81, 100000;
or, in round numbers, the casual deficiency Of
the State will aggregate about 81 100000 on
December 81, 1885.
The Constitution provides that the State
may borrow money for the purpose of meet
ing such deficiencies, but that such indebted.
ness shall never exceed $750,000.
It has become necessary not only to use but
to exhaust this power, and bill has accord
ingly been introduced authorizing the Com
missioners of the Sinking Fund to issue and
sell certificates OF indebtedness Of the State in
that amount. The necessity for this step is 30
apparent, it is hoped the bill will be promptly
passed. With even this help it will be neces-
sary to anticipate the revenues OF next year
to the amount Of $250,000. Hence, notwith-
standing this loan, there is imperative neces-
sity for the strictest economy.
But you are invited to look further to
something more important.
Our'State is rapidly growing in both wealth
and population; the demands upon our
treasury are correspondingly increasing. For
the next ten years this will probably continue
more rapidly than heretofore, owing to the
fact that emigration to the Western States is
decreasing in proportion as that country ILLS
up and its lands enhance in value
But, while this demand has been increasing
our sources of revenue have been diminishing.
In 1883 the value for taxation Of Personal
Property of the State, as shown by the grand
duplicate was $542, ,207, ,l2l in 1884 it shrank
to S528, ,298, ,871, and for 1885 dwindled again
to $5O9,9l3,986. This loss has been made up
largely by the steady growth in the valuation
of real estate on account of new structures,
etc., but the loss was greater than the increase
last year, and the result is shown in the fact,
that the grand aggregate OF all the property
in the State, both real und personal, amount
ed in 1885 to but ST. $40 1858 against 81, ,673-
774O8l for 1884, or loss of So, ,694,2
This indicates that our wants and our ability
to meet them are travelling in opposite direc-
tions, and that unless the tax rate or the
valuation Of property is increased, the
casual deficiencies will continue and grow
larger without power 90 provide for them,
because OF the extreme limitations allowed
by the Constitution having been reached
under the bill above referred to, providing
for the Issue and sale of the bonds of the State
to the amount Of $750,000 to meet the emer-
gency now upon ue.
The rate of taxation should not be increased,
at least not until other measures that seem
l. x.sa 1nak al
indicated desire of the people to
TAX THE LIQUOR TRAFFIC.
1t is hoped this Legislature will not adjourn
until an efficient measure to that effect has
been enacted. Although such tax can be
levied only for the purpose of police regula-
ton, yet it does not follow that the revenue,
when collected, must necessarily be devoted
to any particular purpose. On the contrary,
it is entirely competent to do with it as the
Legislature may see fit; and it is thought to
be only equitable and just that at least 25
per cent. of the revenue so derived should 60
to the general revenue fund of the State.
From this source the State would, in such
event, realize probably $500,000, to the great
relief of all present classes of Taxpayers.
FOREIGN CORPORATIONS.
Foreign insurance, telegraph and express
companies doing business in this State are
now taxed upon their gross receipts.
There is no reason why foreign telephone,
transportation, car trust car equipment and
sleeping and parlor car companies should not
be similarly taxed. II the policy be right in
the one class of cases it should be equally so
in the others, and equity and justice to the
State and to the other companies that are 60
taxed require an amendment of the laws to
that effect
The most important matter to which it ID
desired to call your attention yet remains te
be stated.
OUR TAX LAWS,
are in the main, perhaps, as wise as they car
be made under our present constitution. l
might be said in favor of exempting from
taxation the bonds of our State and muni
cipal governments, to the end that we nigh
not tax our credit and drive our securitiel
away, but keep them at home and pay thu
interest upon them to our own people. Blu
that is impracticabe and unnecessary to b'
discussed.
1.-The requirement of the constitution is tina
all bonds, Stocks investments, etc, as we'll a
real property shall be taxed at their full
value in money. Our laws have been france
with view to securing this result but
is manifest to all acquainted with our resouI
ces tnaC tney nave lamentaDly falled; 1or 81
such know that instead of grand duplicat
of $l, ,67OO79,568 we ought to have one of q
least 1900 millions, and 1000 millions woul
more nearly represent the real taxable wealt
of the State. To ascertain why, and how
there has been this failure to value propert
as the law requires,
THE STATE AUDITOR,
as result Of conference on the subjec
framed and sent out to the county auditor
of the State certain printed questions to b
answered, calling for information as to th
per cent. at which property, both real an
personal, 10 appraised in their respectlS